Dollar soars against Turkish lira, iShares tumble after PM Davutoglu said to step down

The U.S. dollar was spiking against the lira in electronic trade Wednesday afternoon amid reports that Prime Minister Ahmet Davutoglu would step down after losing a power struggle with President Recep Tayyip Erdogan. On Wednesday, the pair of Turkish officials were expected to meet, sparking speculation that Davutoglu could resign. Political tensions have shaken investor confidence in Turkey's $720 billion economy, resulting in the lira tumbling against the buck to its worst levels since February. Meanwhile, the iShares MSCI Turkey exchange-traded fund
TUR, +2.57%
was down 8.2% and on track for its worst one-day plunge in nearly five years, according to FactSet data.

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